Financial Results for the Third Quarter Ended July 31, 2019
[Japan GAAP] (Consolidated)
Date:

August 30, 2019

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)

Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts:

Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127

Date to report Quarterly Consolidated Financial Statement: September 6, 2019
Date for Dividend Payment:

Not applicable to this financial quarter

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Not preparedBriefing Session for Quarterly Operating Results: Not planned* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the Third Quarter Ended July 31, 2019(1) Results of Operation (Consolidated)

Quarter Ended July 31, 2019
Quarter Ended July 31, 2018

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions ofYen
Percent
Yen
Percent
Yen
Percent
31,158
2.4
1,850
18.0
1,878
18.9
30,435
3.5
1,568
17.9
1,580
18.6

Quarter Ended July 31, 2019
Quarter Ended July 31, 2018

Net Income Attributable toOwners of the Parent
Millions ofYen
Percent
1,268
21.5
1,043
20.9

Net Income per Share

Fully Diluted Quarterly
Net Income per ShareYen
127.09104.58

Yen－－(Note) Comprehensive income
Third Quarter ended July 31, 2019: 1,089 million yen (3.0%)

Third Quarter ended July 31, 2018: 1,057 million yen (-14.2%)(2) Financial Condition (Consolidated)

Quarter Ended July 31, 2019Year Ended October 31, 2018

Total Assets (A)(Millions of Yen)
37,22037,331Net Assets (B)(Millions of Yen)
28,48627,876

Net Assets Ratio(B) / (A) (Percent)
76.5
74.7

(Reference) Net assets
Third Quarter ended July 31, 2019: 28,486 million yen

Year Ended October 31, 2018: 27,876 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2018Year Ending October 31, 2019Year Ending October 31, 2019(Prospect)FirstQuarter－－Interim
Term
22.50
23.50

Annual Dividend (Yen)
ThirdEnd ofQuarter
Fiscal Year
24.50
－－
23.50

(Note) Revisions since the most recently released dividend projection: NoneAnnual
47.00
47.00

3. Forecast for Earnings for the Year Ending October 31, 2019 (Consolidated)(Percent change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year
42,200-0.4
2,300-3.3
2,300-1.5
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
1,500-0.9150.33(Note) Revisions since the most recently released dividend projection: NoneNotes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: __(Company names):(2) Adoption of simplified accounting method and the specific accounting method: None
(3) Changes of the principles, procedures, and representation of the accounting policies
1) Change due to revision of accounting standard: None
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At July 31, 2019: 10,533,200 shares

At October 31, 2018: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At July 31, 2019: 554,861 shares

At October 31, 2018: 554,861 shares

3) Number of average shares (accumulated quarterly total)
At July 31, 2019: 9,978,339 shares

At July 31, 2018: 9,978,378 shares*The quarterly earnings report is exempt from the quarterly review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could
differ materially due to various factors.
Please refer to the Financial Results for the Quarter (Attachments) on page 3, (3) [Analysis of Future Forecast onConsolidated Earnings Forecast] of 1. [Qualitative Information on Quarterly Consolidated Operating Results] for theoperating results forecast.

Table of Contents (Supporting Data)
1. Qualitative Information on Quarterly Consolidated Operating Results...................................................................2(1) Analysis of Operating Results................................................................................................................................2(2) Analysis of Financial Condition..............................................................................................................................3(3) Analysis of Future Forecast on Consolidated Earnings Forecast.......................................................3
2. Quarterly Consolidated Financial Statement and Notes.................................................................................................4(1) Quarterly Consolidated Balance Sheet. ................................................................................................4(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
Income......................................................................................................................................6Quarterly Consolidated Statements of Income.....................................................................................................6Quarterly Consolidated Statements of Comprehensive Income.........................................................................7(3) Notes on Quarterly Consolidated Financial Statements………………………………………………………8(Note for premise of going concern)…………………………………………………………………..……8(Notes for significant changes in shareholder’s equity)………………………………………….…………… 8(Additional information) ………………………………………………………………………………………... 8(Segment information) ………………………………………………………………………………………... 81

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the third quarter consolidated year-to-date period, Japan’s economy was supported by vigorous demand for
personal consumption and capital investment and maintained its moderate recovery trend, despite weaker exports
resulting from the economic slowdown overseas in areas such as China and Europe. Overseas, however, despite
the steady growth of the U.S. economy, Europe’s economy continued to be sluggish and the growth rate of China’s
economy remained slack. In the months ahead, the rising sense of uncertainty surrounding the global economy
resulting from circumstances such as further heightened trade friction between the U.S. and China, Great Britain’s
pending withdrawal from the EU, and aggravation of Japan-Korea relations will require careful attention.
Given these circumstances, net sales for the Tomoe Engineering Group for the third quarter consolidated
year-to-date period increased 2.4% from the same period last year to 31,158 million yen, reflecting increase of
net sales in the Machinery & Equipment Business despite lower net sales in the Chemical Product Business.
From the earnings aspect, operating income was 1,850 million yen, 18.0% up from the same period last year
because of higher profit in the Machinery & Equipment Businesses, while ordinary income came to 1,878 million yen,
18.9% up from the same period last year. Net income attributable to owners of the parent was 1,268 million yen,
21.5% up from the same period last year.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, net sales of machinery for domestic private sector demand, components
and repair services for domestic public sector demand, and works in all fields decreased, but on the other hand net
sales of components and repair services for domestic private sector demand, and machinery, components andrepair services for overseas demand were robust. As a result, net sales for consolidated third quarter year-to-date
period were 8,243 million yen, 14.7% up from the same period last year.
With respect to earnings, operating income was 748 million yen, 328.4% up from the same period of the prior year,
mainly because of increased profits in the field of components and repair services for overseas which had highmargins.
(Chemical Products Business)
In the Chemical Products Business, net sales of materials for housing and construction applications in the industrial
materials sector increased, but on the other hand net sales of transport materials for semiconductor manufacturing
applications in the electronics materials sector, and ceramics products for semiconductor fabrication equipment in
the advanced materials sector decreased. As a result, net sales for consolidated third quarter year-to-date period
were 22,914 million yen, 1.4% down from the same period last year.
With respect to earnings, operating income was 1,102 million yen, 20.9% down from the same period of the prioryear, because of decreased income and declined gross-profit margin.

2

(2) Analysis of Financial Condition
Total assets as of the end of the consolidated third quarter under review were 37,220 million yen, decreased by 111
million yen from the end of the previous consolidated fiscal year. This mainly reflected an increase in cash anddeposits, and electronically recorded monetary claims, and a decrease in notes and accounts receivable–trade.
Liabilities were 8,733 million yen, decreased by 722 million yen from the end of the previous consolidated fiscal year,
mainly because of an increase in advances received, and allowance for product warranty, and a decrease inincome tax payable and provision for bonuses.
Net assets stood at 28,486 million yen, increased by 610 million from the end of the previous consolidated fiscalyear. This mainly reflected an increase in retained earnings recorded under quarterly net income attributable toowners of the parent.
As a result of the above changes, the equity ratio at the end of the consolidated third quarter under review
increased by 1.8 points compared with the end of the previous consolidated fiscal year to 76.5%.
(3) Analysis of Future Forecast on Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending October 31, 2019 thatwere announced in the “Notice on changes in earnings forecast” released on May 31, 2019.

3

2. Quarterly Consolidated Financial Statement and Notes(1) Quarterly Consolidated Balance Sheets (Third Quarter)(Thousands of Yen)
End of Previous YearEnd of Third Quarter(October. 31, 2018)(July 31, 2019)

AssetsCurrent Assets
Cash and Deposits

9,354,256

10,713,956

Notes and Accounts Receivable-Trade

11,834,551

10,000,298

Electronically Recorded Monetary Claims

2,183,842

2,488,101

Merchandise and Finished Goods

3,685,115

3,397,129

Work in Process981,660

1,112,862

Raw Materials and Supplies

667,846

886,355

Others183,711309,363

Allowance for Doubtful Accounts
Total Current Assets-67,114-63,625

28,823,870

28,844,442

4,459,308

4,482,498

Accumulated Depreciation-1,831,356-1,924,154

Buildings and Structures, Net

2,627,951

2,558,343

Machinery, Equipment and Vehicles

3,697,837

3,780,664-3,304,595-3,298,601

393,242

482,063

1,931,089

1,930,708

Construction in progress

10,606

7,867

Others980,958

1,014,610-901,758-939,397

79,1995,042,089

75,213
5,054,196

109,792

108,313

Investment Securities

1,374,561

1,241,467

Guarantee Deposits

340,386

343,210

1,554,938

1,567,033

Deferred Tax Assets

16,436

4,017

Others

92,65480,310Allowance for Doubtful Accounts-22,871-22,881

Total Investments and Other Assets

3,356,107

3,213,157

Total Noncurrent Assets

8,507,988

8,375,667

Total Assets

37,331,859

37,220,110

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, NetLand

Accumulated Depreciation
Others, Net
Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets

4